The 650,000-barrel-per-day Dangote Refinery is currently conducting test runs for the production of Premium Motor Spirit (petrol), with full-scale operations anticipated by mid-September.
This update comes from a report by Reuters, citing a note from industry monitor IIR Energy. The $20 billion refinery, owned by Aliko Dangote, has previously only produced diesel and other distillate fuels. While the refinery had initially planned to begin petrol deliveries in July and aimed to start production by May, delays have pushed these timelines back. IIR Energy cautioned that further delays are still possible.
Once fully operational, the refinery is expected to significantly impact the Europe-to-Africa fuel trade and drastically reduce Nigeria’s dependence on imported refined products.
Earlier this month, a Federal Government committee, established to ensure crude oil sales to local refineries in naira, reached an agreement with the Dangote Petroleum Refinery to begin rolling out petrol in September 2024. Additionally, the Federal Government announced that the sale of crude oil to Dangote Refinery and other local refineries would commence on October 1, 2024.
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee in Abuja. At the same meeting, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, and the Chairman of the Technical Sub-Committee, confirmed that the first delivery of PMS from the Dangote Refinery is expected next month under existing agreements.
